MC Mining’s Uitkomst production falls in first quarter

JSE-listed MC Mining’s run-of-mine coal production at the Uitkomst steelmaking and thermal coal mine for the quarter ended September 30 (the first quarter of its 2025 financial year) was 35% lower than the September 2023 quarter at 90 069 t, compared with 139 192 t.

The decrease was owing to unfavourable geological conditions and underground equipment availability challenges during the period.

Uitkomst sold 47 586 t of high-grade coal during the quarter and 8 719 t of lower grade middlings coal.

Limited activities were undertaken at the Makhado steelmaking hard coking coal project during the quarter.

Limited activities were undertaken at the company’s Vele Aluwani semi-soft coking and thermal coal colliery and Greater Soutpansberg Projects.

Depressed thermal coal prices continued with average prices of $110/t for the three months, compared with $108/t in the fourth quarter of full-year 2024 and $109/t in the first quarter of full-year 2024.

Premium steelmaking hard coking coal prices, however, remained elevated, averaging $212/t in the quarter.

MC Mining has reached an agreement with Hong Kong Stock Exchange main board listed Kinetic Development Group (KDG), the terms of which provide that KDG (or its designee) will subscribe, in two tranches, for a total of 51% of the post-transaction issued share capital of MC Mining.

Under the terms of the agreement, KDG has subscribed for an initial 13.04% of MC Mining for an aggregate consideration of $12.97-million.

The second subscription for the remaining aggregate $77.03-million will be effective within seven business days of the fulfilment or waiver of the conditions precedent.

MC Mining entered into a A$1-million ($700 000) unsecured loan facility with Eagle Canyon International Group Holding.

The trial period for the marketing agreement with Paladar expired at the end of July and Uitkomst has opted not to extend the arrangement.

Christine He was appointed as interim MD and CEO of MC Mining, effective from July 1.

Muhui (Chris) Huang was appointed as a nonexecutive director of MC Mining, and Bill Pavlovski and Dr Steele West were appointed as independent nonexecutive directors.

The group had available cash and facilities of $10.8-million at the period-end.

The group recorded one fatality in the period, owing to a fall-of-ground incident at the Uitkomst Colliery, and there was also one lost-time injury.